Starlink’s planned expansion into South Africa has hit a major setback as the satellite company officially withdraws from regulatory hearings led by the Independent Communications Authority of South Africa (ICASA).
According to an ICASA spokesperson, SpaceX, Starlink’s parent company owned by the world's richest man Elon Musk, formally notified the telecom regulator on Wednesday evening that it would not participate in the oral hearings. The notice came just hours after SpaceX representatives failed to appear for their scheduled presentation that morning.
ICASA launched these hearings to gather industry input on its proposed South African satellite services licensing framework. A key objective is to establish a registration process for international satellite operators looking to provide services directly or through partnerships with licensed local providers.
While Starlink’s satellite internet service is already accessible in the country, the company has yet to secure official approval. A major hurdle remains South Africa’s 30% local ownership requirement, which SpaceX has openly criticised as a significant barrier to entry.
In a written submission to ICASA on January 28, SpaceX argued that the regulation effectively excludes foreign satellite operators, particularly those with direct-to-consumer business models like Starlink. The company emphasised that its global policies prohibit local shareholding, making compliance impossible.
SpaceX further contended that the rigid ownership structure remains an obstacle even when foreign operators are willing to meet Broad-Based Black Economic Empowerment (B-BBEE) requirements and invest in programs benefiting historically disadvantaged communities.
The company urged ICASA to align its regulations with the ICT sector code, which allows for equity-equivalent programs as an alternative to local ownership.
"If ICASA removes this barrier, it would not only increase foreign investment in South Africa but also support industry growth, encourage competition, and drive innovation," SpaceX stated in its submission.
ICASA has yet to publicly respond to SpaceX’s concerns, but the company’s withdrawal could spark a broader debate about whether South Africa’s ownership policies hinder international investment.
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The controversy surrounding Starlink’s exit from the hearings has escalated amid broader political tensions. On Tuesday, Musk, SpaceX’s CEO accused South Africa of having "openly racist ownership laws" in a social media post, intensifying debates over the country’s B-BBEE policies and the recently signed Expropriation Act.
The issue has also drawn international attention. On Thursday, newly appointed U.S. Secretary of State Marco Rubio announced he was pulling out of the upcoming G20 summit in South Africa, citing concerns over land reform and what he described as an anti-American stance.
In response to mounting pressure, President Cyril Ramaphosa spoke with Musk to address what his office called "misinformation about South Africa," particularly regarding land reform. However, with SpaceX stepping away from the licensing discussions, the future of Starlink in South Africa remains highly uncertain.
As of the time of writing, SpaceX has not provided a reason for boycotting the hearing. Meanwhile, ICASA’s hearings will continue until Friday, with various industry stakeholders scheduled to present their views.
